- Gold price is oscillating in a $1,850-1,864.23 range ahead of the US NFP.
- An estimation of the US NFP is significantly lower than the 12-month average figure.
- The momentum oscillator RSI (14) is indicating more consolidation ahead.
Gold price (XAU/USD) is consolidating below the critical resistance of $1,860.00 after a sheer upside move from the low of $1,786.78, recorded on May 16. The precious metal has turned sideways as investors are awaiting the release of the US Nonfarm Payrolls (NFP), which are due on Friday. The US NFP is a major catalyst that guides the preparation of the monetary policy statement, which is dictated by the Federal Reserve (Fed).
As per the market consensus, the US NFP is expected to land at 320k against the prior print of 428k. The labor market in the US economy is extremely tight and continuous additions of jobs are indicating the healthy progress of the economy. On an average basis, the US economy has been adding 551.6k jobs to its labor force over the past year. This time, the forecast of 320k is significantly lower than the average additions, which signals that the employment curve is advancing but at a diminishing rate.
On the dollar front, the US dollar index (DXY) has comfortably established below 102.00. The asset has registered a fresh monthly low at 101.30. This week, ISM Manufacturing PMI data also holds significant importance. The economic catalyst is seen at 54.5 against the prior print of 55.4.
Gold technical analysis
On an hourly scale, the gold price is forming a Symmetrical Triangle that signals a slippage in the volatility followed by a breakout in the same. Considering the price action, an upside break of the above-mentioned chart pattern looks likely. The 20-period Exponential Moving Average (EMA) at $1,856.90 is overlapping with the gold prices, which signals an ongoing consolidation phase. Apart from that, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals the continuation of a rangebound move.
Gold hourly chart
|Today last price||1855.57|
|Today Daily Change||1.82|
|Today Daily Change %||0.10|
|Today daily open||1853.75|
|Previous Daily High||1862.02|
|Previous Daily Low||1848.04|
|Previous Weekly High||1869.75|
|Previous Weekly Low||1840.85|
|Previous Monthly High||1998.43|
|Previous Monthly Low||1872.24|
|Daily Fibonacci 38.2%||1856.68|
|Daily Fibonacci 61.8%||1853.38|
|Daily Pivot Point S1||1847.19|
|Daily Pivot Point S2||1840.62|
|Daily Pivot Point S3||1833.21|
|Daily Pivot Point R1||1861.17|
|Daily Pivot Point R2||1868.58|
|Daily Pivot Point R3||1875.15|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.